Cheshire East Council launched the Fairerpower Energy offering in March 2015 to supply energy primarily to the residents of Cheshire East, but also across the North West and Midlands. The scheme has been successful in its original remit of offering a challenge to the big 6 energy suppliers to increase competition and with enabling access to cheaper energy deals.
The Skills & Growth Company was established after Fairerpower was established, therefore transferring its management to the Skills & Growth Company was not an option at that time. Now that the wholly owned company is established the Fairerpower contract with OVO is better placed within this vehicle for trading and management purposes. Trading via an ASDV is a more appropriate vehicle than a local authority that has limited scope to develop the brand due to restrictions. The Skills & Growth Company will carry on with the initial vision aims and objectives. The contract with OVO will run until December 2019.
The Skills & Growth Company has more freedoms and flexibilities to trade than the local authority and therefore is a better location for the Fairerpower contract. The Skills & Growth Company has the ability to trade within Teckal exemptions, and given its current management responsibility (as the Council’s Agent) of the Fairerpower contract with OVO, it is recommended that the contract is novated to the Skills & Growth Company.
Decision type: Non-key
Decision status: Recommendations Approved
Wards affected: (All Wards);
Decision due: 23 Jan 2017 by Cabinet Member for Regeneration